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Bulletin: Celulosa Arauco y Constitucion Ratings Unaffected By Acquisition Of Tafisa Brasil S.A. Aug 09
Standard & Poors, Aug 2009
Abstract
BUENOS AIRES (Standard & Poor's) Aug. 27, 2009--Standard & Poor's Ratings Services said today that its ratings on Chile-based forest company Celulosa Arauco y Constitucion (ARAUCO; BBB/Stable/--) are not affected by the company's recent announcement of its acquisition of Brazil-based Tafisa Brasil S.A. for about $165 million. Tafisa Brasil, which has a total annual installed capacity of 640,000 cubic meters, operates three production lines: two produce medium-density fiberboard; and the third produces particleboard. Our ratings on ARAUCO already incorporate potential opportunistic acquisitions of this size and, particularly in this case, we do not expect ARAUCO to increase its financial debt as a result of the purchase. ARAUCO's main cash flow protection measures and leverage metrics should remain relatively weak throughout...
Companies mentioned in this report are: Celulosa Arauco y Constitucion S.A.,Brazil (Federative Republic of),Chile (Republic of)
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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